# exam2 - Name: _ Class: _ Date: _ ID: A exam2 Multiple...

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Name: ________________________ Class: ___________________ Date: __________ ID: A 1 exam2 Multiple Choice Identify the letter of the choice that best completes the statement or answers the question. Use the following table of estimated price elasticities of demand to answer the questions that follow. Country Tobacco Dairy Meat Iran -0.70 -0.56 -0.51 Swizerland -0.27 -0.24 -0.22 Turkmenistan -1.14 -0.72 -0.65 United States -0.11 -0.10 -0.09 ____ 1. Which of the following is true? a. Demand for Tobacco is inelastic in all countries c. Demand for Tobacco is elastic in Iran b. Demand for Tobacco is inelastic in the United States, Iran and Switzerland, but elastic in Turkmenistan d. Demand for Tobacco is more inelastic in Iran than in Switzerland ____ 2. Suppose the price of meat fell by 20% in Turkmenistan, this would lead to a a. decrease of 6.5% in quantity demanded c. A decrease of 13% in quantity demanded b. An increase of 6.5% in quantity demanded d. An increase of 13% in quantity demanded Use the following information about the demand elasticities for apples in the US to answer the questions that follow. Own-price elasticity: -0.45 Cross-price elasticity with bananas: 0.15 Cross-price elasticity with eggs: -0.30 Income elasticity: 0.15 ____ 3. Which of the following is true? a. Apples are inferior c. Apples and Bananas are complements b. Demand for apples is elastic d. Apples are normal ____ 4. Which of the following is true? a. Apples are a substitute for eggs and bananas c. Apples are complement for bananas and a substitute for eggs b. Apples are a complement for eggs and bananas d. Apples are a complement for eggs and a substitute for bananas.

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Name: ________________________ ID: A 2 Suppose the supply and demand for widgets is given by the following
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## This note was uploaded on 02/20/2012 for the course ECON 221 taught by Professor Gordanier during the Fall '08 term at South Carolina.

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exam2 - Name: _ Class: _ Date: _ ID: A exam2 Multiple...

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